Credit Perceptions and Credit Behavior of Rice Farmer-Borrowers of Sta. Monica Farmers Marketing Cooperative Under the Expanded Rice Credit Assistance (ERCA) of Rice Competitiveness Enhancement Fund (RCEF) in Sta. Rita, Pampanga

Date

6-2021

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Marilyn M. Elauria

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

The study analyzed the credit perceptions and credit behavior of rice farmer-borrowers. The specific objectives of the study were: (a) to describe the operations, requirements, and other relevant information of Expanded Rice Credit Assistance (ERCA); (b) to establish the profile of the ERCA rice farmer-borrowers of Sta. Monica (SRP) Farmers Marketing Cooperative in Sta. Rita, Pampanga; (c) to describe the perceptions of the rice farmer- borrowers of the selected cooperative availing the ERCA credit program; (d) to analyze the credit utilization of the rice farmer-borrowers; and (e) to provide recommendations encountered by the farmer-borrowers under ERCA.

Primary and secondary data were used in the study. The primary data were gathered through a questionnaire answered by all 28 rice member-borrowers of the selected cooperative and secondary data were consolidated by the treasurer of the cooperative and sent to the researcher through email.

Results show that the average age of all rice farmer-borrowers was 61 years old, half of the respondents had at least reached technical-vocational level in education, and had at least 32 years in farming. The average farm size was 1.7 hectares which were all irrigated. Most of the farmers were tenants (57.1%), some were owners (39.3%), few were leasers (3.6%). Majority of the farmers used inbred seed (67.9%) in their farming activity.

Across all the credit perception items, the farmer respondents perceived the timing of release of loan (85.7%) as very satisfactory the most. Based on the chi-square test results, credit perception ratings were independent from sex and farming experience but credit perception on requirements for the loan were associated with age and educational attainment. Also, ratings on procedures and process were associated with educational attainment. As for the relationship of credit utilization among socio-demographic characteristics, only the proportion of credit used for non-farm operations were significantly different across sex. Lastly, rice farmer-borrowers were satisfied with the minimum requirements, flexible procedures, efficient processing and timely release of loans but they did not utilize their credit for farm operations alone due to some reasons such as personal debts, home consumption, education, and “pabunga”.

Based from the findings of the rice farmer-borrowers, the following were recommended: (a) the cooperatives who borrow from this credit program should develop an effective repayment and collection condition; (b) the government should plan and conduct progressive community services that would enhance the credit perceptions of the Filipino rice farmer-borrowers towards borrowing from formal lending institutions such as the ERCA program and to help them avoid paying high interest rates to informal lending institutions; and (c) they should also conduct sustainable trainings and seminars for farmers about credit utilization.

Language

English

LC Subject

Loans, Rice Farmers, Cooperative societies

Call Number

LG 993.5 2021 A14 D47

Notes

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Document Type

Thesis

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